Traditional IRA vs Roth IRA Calculator 2026 β Which Is Better?
Compare Traditional IRA (deductible now, taxed later) vs Roth IRA (taxed now, tax-free forever) using 2026 limits. Find your breakeven tax rate and see 30-year projections.
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2026 limit: $7,500 (under 50) / $8,600 (50+) %
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Recommended Account
$0
Traditional After-Tax Value
$0
Roth Tax-Free Value
$0
Winner's Advantage
Projection at 10-Year Milestones
| Year | Age | Trad. Balance | Trad. After-Tax | Roth Balance | Roth Advantage |
|---|
How This IRA Comparison Calculator Works
Both Traditional and Roth IRAs allow $7,500 in annual contributions for 2026 (under age 50). The key difference is timing of taxation: Traditional deductions save tax now but all withdrawals are taxed. Roth provides no current deduction but all qualified withdrawals are completely tax-free.
Calculation Method
Years of Growth = Retirement Age - Current Age
FV = Contribution Γ [(1+r)^n - 1] / r (future value of annuity)
Traditional IRA:
You save: Contribution Γ Current Rate (deduction value)
Retirement Balance: FV
After-Tax Value: FV Γ (1 - Retirement Rate)
Roth IRA:
You save: $0 upfront (no deduction)
Retirement Balance: FV (same growth)
After-Tax Value: FV (100% tax-free)
Roth wins when: Retirement Rate > Current Rate
Traditional wins when: Current Rate > Retirement Rate
2026 Contribution Limits
Under age 50: $7,500 combined Traditional + Roth
Age 50 or older: $8,600 (includes $1,100 catch-up contribution)
Roth phase-out: Single $161Kβ$176K | MFJ $240Kβ$250K
Traditional deductibility phase-out (with workplace plan): Single $79Kβ$89K | MFJ $126Kβ$146K
Age 50 or older: $8,600 (includes $1,100 catch-up contribution)
Roth phase-out: Single $161Kβ$176K | MFJ $240Kβ$250K
Traditional deductibility phase-out (with workplace plan): Single $79Kβ$89K | MFJ $126Kβ$146K
Extended
Breakeven Rate Sensitivity Table
See after-tax retirement value at all marginal tax rates from 10% to 37%. Identify exactly when Roth wins.
At every possible retirement tax rate, see exactly which account wins and by how much. The highlighted row shows your entered retirement rate.
After-Tax Value at All Retirement Tax Rates
| Future Tax Rate | Traditional After-Tax | Roth Tax-Free | Roth Advantage | Winner |
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Frequently Asked Questions
What are the 2026 IRA contribution limits?
For 2026, the IRA contribution limit is $7,500 for individuals under age 50. If you are age 50 or older, you can make an additional catch-up contribution of $1,100, for a total of $8,600. These limits apply to the combined total of all your Traditional and Roth IRA contributions across all accounts.
Can I deduct Traditional IRA contributions in 2026?
It depends on whether you or your spouse have a workplace retirement plan. If neither of you has a workplace plan, contributions are fully deductible at any income level. If you have a workplace plan, deductibility phases out for single filers at $79,000β$89,000 AGI and for married filing jointly at $126,000β$146,000. If only your spouse has a workplace plan, phase-out is $236,000β$246,000.
What are the 2026 Roth IRA income limits?
Roth IRA contributions phase out at higher incomes. For 2026: Single filers can contribute the full amount below $161,000, with a phase-out from $161,000β$176,000, and no contribution allowed above $176,000. Married filing jointly: full contribution below $240,000, phase-out $240,000β$250,000, no contribution above $250,000. A backdoor Roth conversion is available to higher earners.
When does a Traditional IRA beat a Roth IRA?
A Traditional IRA wins when your current tax rate is higher than your expected retirement tax rate. This can occur for: high-income earners in their peak earning years who expect lower income in retirement, people who plan to live in a lower-tax state in retirement, or situations where significant deductions are expected in retirement (mortgage interest, business losses). The deduction now compounds at your marginal rate; if that rate exceeds your future rate, Traditional wins.
What is the breakeven tax rate for Roth vs Traditional?
The breakeven is the future tax rate at which both strategies produce equal after-tax wealth. If your current rate equals your future rate, the math is roughly equal (assuming same contribution amounts). However, Roth has several real-world advantages beyond the rate comparison: no RMDs, estate planning flexibility, tax diversification, and no state tax risk in retirement. Many advisors suggest the Roth advantage is underestimated in simple rate comparisons.